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Rubber and Wood November 24, 2014 11:30:29 AM

AFPA forecasts brighter prospects for forestry sector

Paul Ploumis
ScrapMonster Author
The quarterly numbers released by the Alberta Forest Products Association (AFPA) indicates that demand for lumber, pulp and paper remained

AFPA forecasts brighter prospects for forestry sector

CALGARY (Scrap Monster): The quarterly numbers released by the Alberta Forest Products Association (AFPA) indicates that demand for lumber, pulp and paper remained robust during the second quarter. The Association further predicts the prospects of forestry sector, especially lumber, to remain brighter going forward.

According to figures, overall forestry sector sales grew 10% during the quarter when compared with the corresponding quarter last year. The total sales during the second quarter this year totaled $728 million. The pulp and paper sales surged 15% during the quarter to $318.6 million. Lumber sales too went higher by 10% to $318.2 million. On the other hand, panelboard sales declined almost 2% over the year to total $91.2 million during Q2 this year.

The total revenue from forestry sector jumped higher by 8.5% to nearly $1.45 billion during the initial six-month period this year. This is when matched with the revenues during the corresponding half year in 2013.

The domestic lumber demand is expected to remain strong. Further, the resurging US housing sector demand will keep the lumber volumes and prices high. The composite price for softwood lumber is expected to rise to peak levels of $500 per thousand board feet by 2016. The Association notes that lots of activity is currently taking place in the forestry industry. Many lumber mills in the province have added to their capacities and introduced additional shifts to meet the increasing demand. Hiring activity has picked up, especially in the lumber sector.

According to the Association, Calgary’s move to permit six-storey wood-frame multi-family buildings may further boost the demand for lumber in Alberta.

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